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Valued at a market cap of $19.1 billion, Leidos Holdings, Inc. (LDOS) is a technology company serving government and commercial clients. The Reston, Virginia-based company provides solutions across defense, intelligence, civil, and health sectors, specializing in areas such as mission systems, cybersecurity, AI-powered analytics, cloud modernization, air traffic management, energy infrastructure, and biomedical research.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and LDOS fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the information technology services industry. The company's long-standing relationships with key U.S. federal agencies, including the Department of Defense, Homeland Security, and the FAA, provide strong revenue visibility through multi-year government contracts. Its specialty lies in delivering complex, integrated solutions that combine advanced technologies like AI, machine learning, cloud modernization, and data analytics with domain-specific expertise.
This tech company is currently trading 26.9% below its 52-week high of $202.90, reached on Nov. 12, 2024. LDOS has rallied 7% over the past three months, outpacing the Dow Jones Industrial Average’s ($DOWI) 1.4% uptick during the same time frame.
Moreover, on a YTD basis, shares of LDOS are up 3%, outperforming DOWI’s marginal downtick. However, in the longer term, LDOS has gained 3.1% over the past 52 weeks, lagging behind DOWI’s 8.6% rise over the same time frame.
To confirm its recent bullish trend, LDOS has been trading above its 50-day moving average since early April, with slight fluctuations. However, it has remained below its 200-day moving average since mid-December, 2024, with some fluctuations.
On May 6, Leidos Holdings’ shares rose 4.6% following its better-than-expected Q1 earnings release. Due to increased demand across all customer segments, its revenue grew 6.8% year-over-year to $4.2 billion, exceeding Wall Street expectations by 4.2%. Moreover, solid margin expansion compared to the prior-year quarter led to a 29.7% growth in its adjusted EPS to $2.97. The bottom-line figure also surpassed the consensus estimates by a notable margin of 20.2%. The company’s impressive performance was supported by higher volumes in managed health services programs, improved program execution, and effective cost management across operations.
LDOS has lagged behind its rival, CACI International Inc (CACI), which gained 5.3% over the past 52 weeks and 12.5% on a YTD basis.
Looking at LDOS’ recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 15 analysts covering it, and the mean price target of $173.80 suggests a 17.2% premium to its current price levels.
